Business Services

Purchasing Policies and Procedures

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Index

Purchasing Responsibility
Overview
General Instruction
Purchase Requisition Instructions
Capital Equipment
Surplus or Obsolete Equipment
How to Order Supplies and Equipment
When Purchasing Receives Your Requisition
When Purchases Are Received
Material Picked Up
Emergency Orders
University Policy and Procedure on Check Requests
How to Use a Check Request Form
University Payment Methods
Questions

Purchasing Responsibility
Business Services is the authorized department for making commitments to off-campus vendors for the purchase of supplies, equipment and services on behalf of all university departments. Business Services conducts the purchasing function in accordance with the ethical and fiscal responsible practices of the purchasing profession. Purchases, using University funds, will be made by Business Services and any purchase made by individuals without following proper purchasing procedures and use of an authorized purchase order from the University will result in personal payment by the individual who makes the commitment(s).

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Overview
The purchasing process is initiated by a department through the use of a purchase requisition (Exhibit A). The department shall specify what is needed in enough detail, clarity and with supporting documentation as needed so that Business Services and vendor(s) have no question as to what is ordered. Business Services will assist in writing specifications, if requested.

Specifications made by the initiating department will not be altered without the permission of the department. Business Service personnel may make suggestions as to alternatives available in the current market or question quality, but will not change specifications without approval.

Correspondence with suppliers relating to present orders, for the purpose of changing specifications, quantities, delivery requirements, or cancellations shall be directed to designated departmental personnel who will communicate with the vendor. Departments, through this expediting process, will keep Business Services appraised of the status of each of their orders.

Business Services desires to work cooperatively with all University personnel. Additional instruction and assistance with purchasing policies and procedures are available upon request. All suggestions are welcome and subject to review that may simplify existing procedures and fall within the existing guidelines of University policies.

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General Instruction
All off-campus purchases at Pacific University are handled through the use of a purchase order, purchasing card, check request or petty cash funds. University charge cards may be used for approved travel.

The signature authorization of the individual signing the purchase requisition or check request authorizes the purchase and verifies that there are adequate funds available in the account being charged. If the request causes the particular budget line item to be overspent, the department will be contacted to adjust the budget dollars before the request will be reprocessed. Budget adjustments must be submitted to the Assistant Vice-President for Financial Affairs.

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Purchase Requisition Instructions
All off-campus purchases of up to $5,000 per single item or $25,000 and above must be initiated with a properly completed purchase requisition, which is delivered to Business Services for processing. Pacific University uses two types of purchase orders: Standard and Blanket. Both types are generated by this same purchase requisition form and the word Blanket is added above the PO Number box. Standard PO's are used for a one time purchase while Blanket PO's are reserved for multiple use of a vendor against a set sum for a period of one year. These forms may be obtained in the Business Services Office. Purchase requisitions should be completed in enough detail to enable Business Services and suppliers to understand the request. Requisition(s) should be submitted far enough in advance to allow for timely delivery. Submit the completed 3-part form with supporting documentation for processing. (Exhibit B, for instruction).

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Capital Equipment
Capital equipment is tangible equipment costing $5,000.00 or more per item. Purchases of capital equipment are made from the capital equipment expense line "7707" and must be approved by the VP of Financial Affairs. Capital equipment must be assigned a capital asset number, inventoried and tracked for the remainder of its useful life to the University. The Business Services Department is responsible for maintaining and tracking Fixed Asset information.

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Surplus or Obsolete Equipment
The Business Services Department is responsible for tracking the disposal of all University capital equipment. An Asset Disposition form (Exhibit C) must be prepared for each item marked for disposal. Each department is responsible for the completion of this form and submits the form to Business Services so the asset value will be removed from active Inventory. Contact the Campus Event Scheduling Coordinator (ext. 2283) for removal of large items to the surplus storage area. Surplus items will be inventoried and campus departments will be advised of this inventory.

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How to Order Supplies and Equipment
The purchase requisition (Exhibit A) is used to request the purchase of goods and services used by the University through the Business Services Department. This procedure outlines the manner in which it should be completed. It is important that all information requested on the form be addressed. Business Services uses the information to inform the vendor of what is needed, when it is needed and where it is needed. Complete the form according to the following instructions. Paragraph numbers agree with the (Exhibit B) on the sample form on the following page.

  1. Confirming Only - mark this box only if you are calling the vendor AFTER you have received the authorized purchase order number.
  2. Department - enter the requesting department name.
  3. Date Ordered - enter the date the requisition is prepared.
  4. P.O. Number - leave blank; completed by Business Services.
  5. Supplier - enter the name, complete address with phone /fax numbers of the vendor.
  6. Date Required - enter a specific date by which delivery is desired. Terms such as "rush," "at once, " "as soon as possible," etc. should not be used.
  7. Method of Shipment - enter how order is to be shipped. (Ups; 2nd day air; Ground)
  8. Pacific Univ. customer number with vendor of choice - enter Pacific's customer number.
  9. Delivery Instructions - enter the department representative's name or building name and room number to which the purchase is to be delivered on campus.
  10. Acct. Number - enter the complete 13 digit account code number to which the purchase is to be charged. Multiple account numbers can be used on the same purchase requisition as long as the account number corresponds with the description and amount of the requested purchase.
  11. Quantity - enter the quantity that is requested.
  12. Item Number - catalog or product identifying number.
  13. Description - enter the description as detailed as possible of the purchase so that Business Services and the vendor will be able to determine what is being requested.
  14. Unit Price - enter the estimated unit price based on previous purchases, advertisements, catalogs, or inquiry.
  15. Estimated Cost - enter the estimated cost by multiplying the quantity by the estimated unit cost.
  16. Shipping and Handling - estimated shipping and handling cost to be included in total cost.
  17. Requested By - enter the name of the person who is completing the requisition form.
  18. Extension Number - requisitioner's phone number.
  19. Approved By - the authorized signature of the department or authorized budget authority for the account number on the requisition. The requisition cannot be processed without the authorized signature.

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When Purchasing Receives Your Requisition
On a daily basis, all requisitions are reviewed by Business Services. When a requisition meets all criteria (account number, signature, funds, etc.), a purchase order batch is prepared. The computerized program encumbers the designated account for the estimated amount of purchase until such time as the purchase is received and the invoice is paid. When payment occurs, the computer program transfers the amount of the purchase from the encumbered column and deducts the amount of the purchase from the designated account budget.

After the requisition is verified, a purchase order is prepared. The purchase order is a four-part form prepared by Business Services and used as the contract for purchases (Exhibit D). The purchase order is designed to give each person, department or vendor all the information they need to know about the contract.

Copy one is a blue copy that is mailed to the vendor. This copy furnishes the information that the vendor needs to complete the order. Copy two is a yellow copy which is used by Business Services for its file copy. Copy three is a pink copy which is forwarded to Accounts Payable with the invoice(s) and is used for the payment of the purchase(s) after authorization by the initiating department. Copy four is a green copy which is returned to the requisitioning department for their records. The departmental copy should be checked for discrepancies with the corresponding purchase requisition before placing in a pending file awaiting resolution. If a discrepancy is found, Business Services should be notified immediately to correct the discrepancy in-house and with the vendor.

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When Purchases Are Received
When the purchase is received, departmental personnel need to check the contents of the shipment immediately for conformity with the packing slips and the outstanding requisition. Special procedures are in place for overages, shortages, damages and returns. The departmental representative signs and dates the yellow copy of the purchase requisition titled "Receiving Report" and returns this to Business Services. This Receiving Report authorizes payment for items received. Partial payments are made as items are received per terms of the vendors invoice. Do not hold invoices until all items are received. Forward all invoices immediately to Business Services for processing.

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Material Picked Up
There are times when it is most advantageous for department representatives to pick up materials direct from the vendor as ordered by the purchase order. The individual making the pick-up should have full knowledge of the order and be able to provide proper identification to the vendor . The department representative must request to have the complete purchase order hand carried. All paperwork signed by or presented to the designated individual by the vendor should be forwarded to Business Services.

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Emergency Orders
There are occasions when the normal purchasing procedures cannot be followed due to an urgent need for material. If an emergency exists, follow the procedure below:

  1. Call Purchasing for assistance in arranging the purchase.
  2. Hand-carry a prepared requisition to Purchasing where a purchase order number will be assigned to your requisition.
  3. All available documentation for the purchase should be attached to the requisition.

NOTE: Emergency orders, unless limited, will result in additional cost, time and effort on the part of all concerned. The above procedures should only be used when actual emergencies arise and not as a convenient alternative to normal procedures.

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University Policy and Procedure on Check Requests
A check request (Exhibit E) should be used in instances when a purchase order will not be issued. Generally, the following items may be paid for by check request:

  • vendor does not honor purchase orders
  • prepayment
  • reimbursement for mileage or other miscellaneous expenses
  • replenish petty cash funds
  • refunds
  • tuition grants
  • subscriptions
  • conference registration/membership & Assoc. dues
  • annual fee
  • income distribution
  • payroll benefits
  • telephone /utility billings
  • advances (travel, supplies)
  • statement payments
  • cost of goods (Opt, PUCS, 2nd class postage)
  • credit card (except for single purchase of supplies/item $5,000 & above
  • internal auxiliary services (ARAMARK, Bookstore, Agency Funds)

Check requests will continue to be processed in the Business Office, Marsh Hall.

For purchases under $5,000 per single item or cumulative to $25,000, several options are available:

  1. If Pacific University has an account with the vendor, a department may order directly and have the invoice sent to the Business Office.
  2. Use the check request procedure as described below.
  3. Make the purchase with personal funds and submit a check request for reimbursement.
  4. Use the purchase requisition method if the vendor requires a purchase order number, or if you prefer to follow this method.

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How to Use a Check Request Form
Complete the form according to the following instructions. (Paragraph numbers agree with key on sample form .)

1. VENDOR TAX ID/SSN - if check is to an individual mark tax ID of Social Security Number.

2. VENDOR # - leave this blank, it is completed by the Business Office.

3. PAYABLE TO - enter the name to whom the check is to be written.

4. DATE - enter date request is made.

5. ADDRESS - enter the address of the name above.

6. DATE REQUIRED - enter the date the check is needed.

7. YOUR REF - enter reference number is desired.

8. ATTACHMENTS TO MAIL - check if attachments are to dent with check.

9. INVOICE #- enter number of invoice to be paid by check if necessary.

10. MAIL TO ADDRESS - mark if check is to be mailed.

11. DESCRIPTION - enter description of what check is for.

12. HOLD FOR PICK - mark if check is to be picked up in Business Office.

13. HOLD NAME - enter name of person to pick up check.

14. ACCOUNT NUMBER - enter line item account number for check to be charged against.

15. AMOUNT - enter amount of check.

16. COMMENTS - enter any special information if desired.

17. TOTAL - enter total of check request.

18. AUTHORIZED SIGNATURE - enter signature of budget authority.

18. EXT. #. - enter phone extension number.

19. PRINTED NAME - print name of authorized signature.

IMPORTANT: Never use a Check Request to pay charges when a Purchase Order has been or will be issued.

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University Payment Methods
Invoices for purchases initiated with a purchase order are to be sent to the Business Services Office for validation and processing. Invoices are matched with the purchase requisition, and when the invoice is approved by the departmental representative it is accepted within the computer system for Accounts Payable to process. The invoice is then forwarded on to Accounts Payable for voucher creation and a check is created for payment to the vendor. If an original invoice is received by a department, please forward the invoice to Business Services. DO NOT HOLD!

Invoices for purchases initiated with a check request are processed as follows:

Instruct the vendor to send the invoice to Accounts Payable in the Business Office. If approval is needed by the department, Accounts Payable will send a copy of the invoice for authorization and a budget signature.

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Questions
If you have any questions regarding purchasing, please e-mail or call x2265 in the Business Services Office.

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This page is maintained by B. Ray.